How to Break a Debt Settlement Agreement

As long as you did not give the creditor or collection agency your bank account number when you negotiated a debt settlement agreement, then getting out of that agreement should be fairly easy. A debt settlement agreement is an agreement for you to pay a certain percentage of the unpaid debt to the lender or collection agency within a certain time frame. It is not the same as renegotiating the date, amount or interest rate on your monthly debt payments or paying the full amount of a debt on a negotiated payment schedule.

Instructions

1

Call the lender or collection agency and let them know that you have changed your mind about the agreed settlement.

2

Miss the payment date, and don't send any money to them.

3

Wait to hear from them or their lawyer to determine your next steps.